IN RE: WEST 97th STREET REALTY CORP. (2008)

Supreme Court, Appellate Division, First Department, New York.

IN RE: WEST 97th STREET REALTY CORP., Petitioner-Appellant, v. NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL, Respondent-Respondent. Central Park Gardens Tenants' Association, Intervenor-Respondent-Respondent.

Decided: May 29, 2008

LIPPMAN, P.J., TOM, GONZALEZ, BUCKLEY, RENWICK, JJ.

Rosenberg & Estis, P.C., New York (Jeffrey Turkel of counsel), for appellant. Gary R. Connor, New York (Caroline M. Sullivan of counsel), for DHCR, respondent. Hartman, Ule, Rose & Ratner, LLP, New York (Jacques F. Rose of counsel), for Central Park Gardens Tenants' Association, respondent.

Order and judgment (one paper), Supreme Court, New York County (Eileen Bransten, J.), entered October 30, 2007, dismissing this proceeding to challenge denial of an application for an ancillary service exemption, unanimously affirmed, without costs.

DHCR's determination that the garage operator was not an independent contractor, and that the ancillary service exemption under Rent Stabilization Code (9 NYCRR) § 2520.6(r)(4)(xi) does not apply to a garage formerly subject to regulation under the Mitchell Lama Law, was not arbitrary and capricious or without a rational basis in the administrative record. The interpretation of statutes and regulations by an agency responsible for administering them is entitled to great deference and must be upheld where, as here, it is reasonable (see Matter of Partnership 92 LP & Bldg. Mgt. Co., Inc. v. State of N.Y. Div. of Hous. & Community Renewal, 46 A.D.3d 425, 428-429, 849 N.Y.S.2d 43 [2007] ).

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